Chip stocks shed more than $1 trillion, with six companies losing $100bn each
NVIDIA, SK Hynix, Samsung, Micron, AMD and TSMC each lost more than $100 billion in market value in the late-July selloff. The companies powering the buildout repriced without any of them reporting a bad quarter.
The detail that makes this more than a rotation is the uniformity. Six companies at different points in the supply chain — accelerators, memory, foundry — losing over $100 billion each in the same window is not a judgement about any one of them. It is a judgement about the demand curve they all sit on.
Nothing in the operating results explains it. AMD then reported 50 percent revenue growth days later and still fell. Strong numbers meeting a falling multiple is what it looks like when the market stops arguing about this year's earnings and starts arguing about the terminal value.
The question underneath is whether announced buildouts convert into sustained purchasing. That is exactly the thing made harder to read when the supplier is also financing the customer, and harder again when a forecast for 2028 nearly triples in a single quarter.
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